HC Deb 20 December 1962 vol 669 cc230-1W
Mr. McKay

asked the Minister of Pensions and National Insurance what would be the effect if the present graduated contribution payment, of 4¼ per cent. on incomes above the £9 level, were increased to 5 per cent. on all incomes over £9, and if a level rate contribution of 41s. for graduated pension, plus 8s. 4d. for level rate pensions per week were paid on all incomes above £50 per week, in order to obtain the same graduated pension as that obtained from an income of £50; and if he will make a statement on the practicability of this scheme, further details of which have been sent to him.

Mr. N. Macpherson

I see no prospect that a scheme on these lines would work out satisfactorily in practice, but I am writing to the hon. Member.

Mr. McKay

asked the Minister of Pensions and National Insurance what will be the combined amount of money allocated by the worker and by the employer, respectively, if 22 million people paid graduated pensions, and contributed on the average 10s. per week for graduated pensions, the average age when joining being 40 years and the rate paid being 5 per cent. instead of 4¼ per cent.; what pension would the worker receive when he retired at the age of 65 years; and, if he died at the age of 70 years, what would be the balance out of the combined amount.

Mr. N. Macpherson

On the assumptions stated, which seem to relate to average earnings of £19 a week, the graduated contributions would amount to £1,304. The hon. Member does not say on what terms benefit should be calculated for the purpose of the last two parts of his Question.

Mr. McKay

asked the Minister of Pensions and National Insurance if the 4¼ per cent. contribution now made for graduated pensions on incomes over £9 to a £15 limit were changed to 5 per cent. for all incomes between £9 to £50, and all incomes above £50 were to contribute the same as the £50 income and were to receive the same graduated pension, and if the self-employed were to pay 6 per cent. on wages, what would have been the balance in 1961.

Mr. N. Macpherson

This would depend among other things upon what assumptions were made about contracting out and about benefit rates.